Week 3 - Questions and Answers
Chapters 6 and 7 (7 th
Chapters 7 and 8 (8 th
Chapter 6 (7th edition) Chapter 7 (8th edition)
4. Q: Describe the “rules” for acceptance, and explain why such rules are necessary.
A: The rules for acceptance:
Only the person to whom an offer is made can accept the offer;
Acceptance must be communicated in the manner requested or implied by the offeror;
Where acceptance is by mail, the acceptance is effective on the date the acceptance is
placed in the mail;
Where communication is instantaneous, acceptance occurs when it is received by the
offeror, and the contract is made where acceptance is received;
Acceptance that proposes different terms than the original offer is not an acceptance, it
is a counter-offer;
Silence is not acceptance, unless specified in the offer and agreed to by both parties;
If acceptance is communicated in a manner different than that specified, acceptance
occurs when it is communicated to the offeror;
Where an offer is a unilateral offer, acceptance is by an offeree’s performance of its
It stands to reason that since the very formation of a contract requires offer and
acceptance, rules have evolved for greater certainty, so that the parties can “know”
when an offer has been made and accepted.
6. Q: Explain the term “counteroffer”, and describe how it might arise.
A: A counter-offer occurs when a party does not accept the original offer but proposes
new terms or changes to the contract. The newly proposed agreement is different from
the offer, it becomes an offer on its own.
9. Q: Explain the rationale behind the rule that states than an offer by mail invites
acceptance by mail, and that the acceptance is complete when a properly addressed
letter of acceptance is dropped in a mailbox.
A: Obviously when a letter is placed in the mail, it is not predictable with any degree of
certainty exactly when the letter will be delivered. Where parties prefer to do offering
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